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Coinstar KYC Hurdles Are Hurting BTC User Experience

Coinstar kyc hurdles are hurting btc user experience

Coinstar KYC Hurdles Are Hurting BTC User Experience

Coinstar’s initiative to support buying BTC at 20,000 locations in the US is facing mixed reviews days after it launched as users complain about high costs and poor performance.


AML/KYC Overload

Coinme, the BTC ATM operator which began offering purchases in 2014, teamed up with change counter Coinstar last week to let customers purchase BTC for cash using the same apparatus.

As user experiences began surfacing on social media, however, not all appeared to be going to plan.

Specifically, reviews slated the overreaching security measures Coinme and Coinstar had implemented. To buy BTC, one commentator wrote on Twitter, it was necessary to provide an email address, phone number, name, ID verification and even a selfie photograph.

“Lame but not unexpected. Seems silly for such a small amount,” the commentator, known as CryptoParadyme, wrote about their $25 purchase.

Fees, IDs And Technical Issues

The current US regulatory landscape surrounding cryptocurrency ownership focuses on blocking covert profiteering from cryptocurrency trading, with major companies such as Coinbase previously facing data inspection demands from authorities.

Coinstar change machine

While such situations appear beyond the control of Coinme, criticism of its latest move also involved poor technical reliability of its processes.

CryptoParadyme summarized about the experience:

Buy BTC with cash, then fill out a form, submit your ID and selfie, wait over an hour and give us your email to make an account.

The purchasing process was further beset by problem with Coinme’s app, which failed to load all the necessary steps from mobile.

In all, a $25 BTC purchase cost around 4 percent in obligatory fees, as well as “extra markup” on the price of BTC itself and larger-than-average transaction fees, they added.

Coinme had not replied publicly to the Twitter review at press time.

As Bitcoinist reported, despite the downturn in cryptocurrency markets lasting over a year, the BTC ATM industry continues expanding. The US alone currently has almost 3000 machines, the most out of any country worldwide.

What do you think about Coinme’s BTC purchases via Coinstar? Let us know in the comments below!


Images courtesy of Shutterstock

Published at Mon, 21 Jan 2019 17:00:33 +0000

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